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Sunday, October 13, 2024

Flood victims to pay VAT on donations? Finance Minister Andrzej Domański explains

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A few days, or even a few hours – for some, it took that long to lose their life's wealth. Houses, apartments, cars and other valuables were destroyed by the water in southern Poland. A state of natural disaster was declared in the areas affected by the flood, and the government promised financial assistance. Ordinary Poles and entrepreneurs did not remain indifferent to this tragedy, who rushed to help the flood victims.

Watch the video Financial aid for flood victims launched. Tusk provided details

Poles came to help flood victims

InPost has already collected 3 million zlotys. Caritas Polska has donated 400 thousand zlotys, and the Great Orchestra of Christmas Charity 40 million zlotys. Collections for flood victims are also being conducted by, among others, the Polish Humanitarian Action and the Polish Red Cross. – Flood victims need support now, their situation is dramatic, and we can only estimate the damage! Engage your employees, customers and business partners! You don't have to be a large corporation to help – every zloty counts – encourages Dobrosława Gogłoza, president of the Pomagam.pl Foundation.

Even the Presidential Palace got involved in the aid. – As part of solidarity with those affected by the flood, we decided to limit the planned expenses of the President's Office and transfer money (…) to combat the effects of the devastating element – informed President Andrzej Duda. The Chancellery of the President has reserved over three million złoty for aid for flood victims. A list of companies and organizations that have contributed to the assistance is available here.

Doubts quickly arose – whether flood victims who receive support will have to pay tax VAT? After all, the law imposes such an obligation in the case of a donation. The Minister finance Andrzej Domański, however, quickly dispelled these doubts.

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Aid for flood victims exempt from VAT

“We are introducing a 0% VAT rate for donations of goods and services provided as part of aid for flood victims. The 0% rate will apply to donations made from September 12 to December 31, 2024 through Public Benefit Organizations, local governments, medical entities and RAR. The draft regulation was submitted today for urgent inter-ministerial consultations,” the Minister of Finance informed on social media.

This means – in short – that donations for flood victims will be exempt from VAT. “In order to maintain the 'tightness' of the VAT system, the 0% rate will apply provided that a written agreement is concluded between the taxpayer and one of the entities indicated above, from which it will result that the donated goods or services will be related to helping those affected by this cataclysm,” he notes. law.pl after analyzing the project.



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